Before you talk to your lender...

Check your credit report (annualcreditreport.com). Fix any errors. It may take a long time. Improve your score by reducing what you owe and never missing a payment date. Stop applying for new credit cards. Stay well below your credit card limits. Gather records the lender will want to see – pay stubs, proof of rent, copies of bills, tax returns and brokerage/401K statements. Save money toward your down payment. You may need anywhere from 3%-20% of the sales price. With prices and mortgage rates down and government assistance for first time buyers, this is a perfect time to visit a lender and a real estate agent and start the hunt for a new place to live.